Shanghai Metals Market
LME aluminum should move between USD 1,950-1,990/mt on 26th Nov: SMM Morning Review
Edited by : AL CIRCLE
1 min read
News had it last Friday that disagreement between the IMF and EU over Greece’s request for another round of bailout funds narrowed and that consensus was likely to be reached in the short term, helping the euro stage a strong rebound and driving the US dollar index down to near 80. Although LME aluminum inventories hit a fresh all-time high of 5.18 million mt during the European session, a weak US dollar attracted longs to buy aggressively at lower prices, causing positions to surge 15,609 lots. As a result, LME aluminum regained the 30-day moving average and jumped to a high of USD 1,986.8/mt. Finally, LME aluminum ended the day up USD 33.8/mt or 1.73% at USD 1,979.5/mt. Latest LME aluminum inventories surged by 18,000 mt to 5,177,425 mt.
A weak US dollar will help aluminum prices stabilize. LME aluminum should reach USD 1,950/mt at the bottom and move between USD 1,950-1,990/mt on Monday. The SHFE 1301 aluminum contract is expected to open higher at RMB 15,305/mt, with prices between RMB 15,250-15,350/mt. Spot discounts are expected between RMB 50-90/mt and overall trading will be light at the month’ end.
A weak US dollar will help aluminum prices stabilize. LME aluminum should reach USD 1,950/mt at the bottom and move between USD 1,950-1,990/mt on Monday. The SHFE 1301 aluminum contract is expected to open higher at RMB 15,305/mt, with prices between RMB 15,250-15,350/mt. Spot discounts are expected between RMB 50-90/mt and overall trading will be light at the month’ end.
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